Automotive companies in the world are known to have very fierce competition. Because of market needs, technological advances, to the challenges in developing advanced cars. Thus, many automotive companies end up reducing production and choosing only certain market segments or mergers to acquisitions of other automotive companies.
For example Renault-Nissan, Renault has about a 14% shareholding in Nissan, while Nissan owns a 15% stake in Renault. With the existing collaboration, they adopted the same technology in every car they produced. This means that Renault cars have similar body, engine and interior qualities to Nissan. And vice versa.
The collaboration between Renault and Nissan did have a significant impact, the two companies were able to boost revenue and managed to sell 10.6 million units in 2017. However, it has not been able to put Renault-Nissan into the world’s largest automotive company.
The largest automotive company in the world according to Fortune magazine in 2022, is held by Volkswagen. It may sound cliché, because the Volkswagen class is actually very segmented, but it turns out that Volkswagen has other world-class automotive brands, such as Audi, Porsche, Lamborghini, Bentley, Skoda, Cupra to Ducati motorcycles.
With the support of Qatar’s state investment authority, it puts Volkswagen Group into the world’s largest automotive company according to Fortune magazine. In 2021, Volkswagen booked a revenue of EUR250.2 billion.
Are you a Renault-Nissan or Volkswagen team?